In the heart of every Indian town, city, and village, there’s a small business powering local dreams. From family-run kirana stores to digital-first craft startups, small businesses in India are the unsung heroes of the economy contributing nearly 30% to India’s GDP.

Let’s take a closer look at how these businesses operate, the challenges they face, and what lies ahead.

Rooted in Resilience: The Indian Entrepreneur’s Journey

Small business owners in India often wear many hats like marketer, accountant, salesperson, and more. Whether it’s a tea stall in Lucknow or a home-based boutique in Coimbatore, these entrepreneurs blend tradition with hustle.

With the growing accessibility of the internet, even the smallest businesses are going digital. Tools like WhatsApp Business, UPI, Instagram Reels, and ONDC are enabling local sellers to reach customers far beyond their neighborhoods.

Roadblocks on the Path to Growth

Even with passion and innovation, small businesses face real challenges:

Struggling for Funds

Banks often hesitate to lend money to small businesses because these businesses may not have enough credit history or collateral. Although programs like Mudra Loans can help, many small businesses still rely on high-interest loans from informal sources.

Digital Divide

Although they lack the knowledge to effectively use digital platforms, many business owners recognise the need of having an online presence. Their ability to grow is limited if they lack digital literacy.

Red Tape Woes

Navigating GST filings, licenses, and compliance paperwork can be confusing and time-consuming, especially for first-generation entrepreneurs.

Supply Chain Setbacks

Small businesses are more vulnerable to supply chain disruptions than larger corporations, from delays caused by pandemics to rises in petrol prices.

What’s the Way Forward?

Here’s what can make a big difference:

• Fintech companies and digital lenders make credit easily accessible.
• Companies that want to sell and market online can benefit from training in digital skills.
• Fewer licenses have been granted and limits have been streamlined to boost confidence.
• E-commerce integration and export assistance for global reach.

 India’s Future Is Local

Every time you buy from a local shop or a homegrown brand, you’re fueling someone’s dream. With the right mix of support, training, and technology, India’s small businesses can scale new heights, creating jobs, innovation, and stories of success.

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